This question requires you to prepare an statement of comprehensive income, but then also brings in the preparation of the associated statement of financial position. In this way it aims to integrate your study of Chapters 2 and 3. Note that any retained profit you calculate in the statement of comprehensive income should appear in the statement of financial position as 'Reserves', included immediately after share capital.
Use the following balances of Tayside Glass Ltd to prepare an statement of com- prehensive income for its first year of trading, which ended on 31 March 20X9 and the associated statement of financial position at that date. You will first need to iden- tify which items relate to the statement of comprehensive income and which to the statement of financial position.
|
Sales
|
80,007
|
|
Purchases
|
62,419
|
|
Trade receivables
|
1,215
|
|
Trade payables
|
1,630
|
|
Rent
|
4,600
|
|
Telephone
|
627
|
|
Delivery van
|
4,000
|
|
Wages
|
9,650
|
|
Share capital
|
10,000
|
|
Light and heat
|
1,629
|
|
Office expenses
|
1,127
|
|
Bank - positive balance
|
370
|
|
Shop fittings
|
6,000
|
There was no opening inventory, since this was the first year of trading. The closing inventory was valued at £4,200.